Chancellor Rishi Sunak unveiled the contents of his Spring Budget Statement yesterday in the House of Commons.
The Chancellor used the Spring Budget to announce a 5p per litre cut in fuel duty for petrol and diesel; a £1,000 increase in the Employment Allowance from April; a rise in the starting thresholds for national insurance contributions (NICs) to £12,570 from July; and a 50% business rates relief for eligible retail, hospitality, and leisure properties from April 2022.
Mr Sunak also pledged that the basic rate of income tax will be cut by 1p in the pound before the end of this parliament in 2024.
Below is a summary of our Spring Budget key points but for our full detailed version, please visit here.
Individuals
- National Insurance: increase to the starting threshold of £3,000 (to £12,570), from July 2022, to equalise the National Insurance and Income Tax thresholds
- Income Tax: the basic rate will be cut from 20% to 19% from 2024
- Fuel duty cut by 5p per litre, from yesterday evening until March 2023
- Energy: installation by households of heat pumps, solar panels and insulation will suffer 0% VAT
- Energy: the household support fund, which provides councils with funds to support vulnerable households, is to be doubled
Business
- Employment Allowance (for National Insurance) for small businesses: increase to £5,000 from April 2022
- Improvements to the R&D tax reliefs were announced including support for data, cloud computing costs, refocusing relief on R&D undertaken in the UK, allowing businesses to claim relief on R&D supported by “pure maths”. Reforms to be announced in the Autumn Budget
- The Government will encourage businesses to offer more high-quality employee training and look at the current tax system, including the operation of the Apprenticeship Levy, to ensure it is doing enough to incentivise businesses to invest in the right kind of training
- The Government will review tax rates on business investment at the Autumn Budget
Please see here for our full Spring Budget summary.
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